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Apr 24, 2017

5 Points You Must Know Before Taking a Personal Loan

Taking a personal loan nowadays is just a click away. It can come handy during the times of need – be it a medical emergency, child education, vacation, house refurbhishing, or any other exigency. When you are facing a paucity of funds, your banks come as a great help in providing personal loans. Unlike home loans, personal loans are very expensive but easy to get. Every bank has a different rate of interest for personal loans. So, once a decision on seeking a personal loan is made, there are certain things which are considered once you approach a bank. We take a look at 5 things that you must know before taking a personal loan

We take a look at 5 things that you must know before taking a personal loan:

1. Income: Whether you are employed or unemployed, the bank will consider your income to give you a personal loan. Every bank has a certain minimum monthly income range requirement. The bank will also weigh whether your income can repay the personal loan sought.

2. CIBIL score: Another important criteria that is considered during a personal loan is the CIBIL score. CIBIL score holds importance as the number assigned to each person representing his/her creditworthiness is considered by the banks while deciding whether a personal loan application should be approved or not. This number in CIBIL score is assigned on the basis of a customers’ financial behaviour, which is assigned through the information provided by the banks and other financial institutions. Financial behaviour includes dues, credit card payments, loans repayment and other kind of debts.

5 Points You Must Know Before Taking a Personal Loan

3. Relation with the bank: This is another criteria that holds significance while seeking a loan from your bank. The customer relation with the bank plays a pivotal role in convincing the lender to provide one a loan.

4. Employment: The banks are looking at stability factor while giving you a personal loan along with the company where one is employed. Employability in a firm and smooth company increases chances of getting a loan

5. Other personal liability: Banks also take into consideration your other liability – like pending dues, loans from friend or known person.